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INTRODUCTION TO SAD

Review Question Chapter 1 (SAD) 1. What is information technology, and why is it important to a business? Information technology (IT) is a combination of hardware and software products and services that companies use to manage, access, communicate, and share information. More than ever, business success depends on information technology. According to a Department of Commerce report, the IT industry has created a new economy, where advances in hardware, software, and connectivity provide unprecedented benefits to businesses and individuals around the world.

2. Define business profiles, business models, and business processes. A business profile is an overview that defines a companys overall functions, processes, organization, products, services, customers, suppliers, competitors, constraints, and future direction. A business process describes specific events, tasks, and desired results. To understand a companys operations, systems analysts first develop a business profile and then create a series of business models. A business model graphically represents business functions that consist of business processes such as sales, accounting, and purchasing that perform specific tasks. 3. Identify the main components of an information system, and describe the systems stakeholders. An information system has five key components: hardware, software, data, processes, and people. People who have an interest in an information system are called stakeholders. Stakeholder groups include the management group responsible for the system; the users, sometimes called end users, inside and outside the company who will interact with the system; and IT staff members, such as systems analysts, programmers, and network administrators who develop and support the system

4. Explain the difference between vertical and horizontal systems packages. A horizontal system is a basic system, such as an inventory or payroll program, that can be adapted for use in many companies. A vertical system is designed to meet the unique requirements of a specific business or industry, such as a Web-based retailer or a video rental chain.

5. How do companies use EDI? What are some advantages of using XML? Online trading marketplaces initially were developed as company-to-company datasharing arrangements called electronic data interchange (EDI). EDI enabled computerto-computer transfer of data between companies, usually over private telecommunications networks. Firms used EDI to plan production, adjust inventory levels, or stock up on raw materials using data from another companys information system. As B2B volume soared, the development of extensible markup language (XML) enabled company-to-company traffic to migrate to the Internet, which offered standard protocols, universal availability, and low communication costs. XML is a data description language that allows Web-based communication between different hardware and software environments. XML is extremely flexible because it is concerned with the data itself rather than the output format. For example, a user could view XML customer data as a Web page on a notebook computer or as a contact list on a PDA. The unique advantage of XML is that data description is not linked to output formatting. This is just the opposite of HTML (hypertext markup language), where the language controls the way the information is displayed on a Web browser.

6. Describe five types of information systems, and give an example of each. Information systems include enterprise computing systems, transaction processing systems, business support systems, knowledge management systems, and user productivity systems. i. Enterprise computing systems support company-wide data management requirements. Airline reservation and credit card billing systems are examples of enterprise computing systems. Transaction processing (TP) systems process data generated by day-to-day business operations. Examples of TP systems include customer billing, accounts receivable, and warranty claim processing. Business support systems provide job-related information support to users at all levels. These systems can analyze transactional data, generate information needed to manage and control business processes, and provide information that leads to better decision making. A tracking system that analyzes sales trends and forecasts future volume is an example of a business support system. Knowledge management systems simulate human reasoning by combining a knowledge base and inference rules that determine how the knowledge is applied. Online tech support systems are examples of knowledge management systems. User productivity systems provide employees at all organizational levels with a wide array of tools that can improve quality, job performance, and productivity.

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User productivity systems include networking, e-mail, voice mail, fax, video conferencing, word processing, automated calendars, database management, spreadsheets, desktop publishing, presentation graphics, company intranets, and Internet access.

7. Describe four organizational levels of a typical business and their information requirements. Four organizational levels are operational personnel, lower management, middle management, and top management. i. Operational personnel need very detailed information directly related to the job functions they perform. Members of lower management, such as supervisors and team leaders, need detailed operational information and some exception and summary information specific to their narrow areas of responsibility. Middle managers need less detailed information, more exception and summary information, and broader information than lower management. Top managers need summary-level information; one-time, what-if information; and external information to support the strategic planning process.

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8. Describe the phases of the systems development life cycle, and compare the SDLC waterfall model to the spiral model. The systems development life cycle consists of five phases: systems planning, systems analysis, systems design, systems implementation, and systems operation and support. During the systems planning phase, you identify the nature and scope of the problems discovered in the systems request and conduct a preliminary investigation. The purpose of the systems analysis phase is to learn exactly what takes place in the current system, determine and fully document in detail what should take place, and make recommendations to management on the alternative solutions and their costs. The purpose of the systems design phase is to determine how to construct the information system to best satisfy the documented requirements. Systems implementation is the phase during which the information system actually is constructed. During systems support and security, the end users take ownership of the constructed information system, the system is evaluated, and the IT department provides ongoing support through maintenance changes and enhancements.

9. Explain the use of models, prototypes, and CASE tools in the systems development process. Also explain the pros and cons of agile development methods. Modeling produces a graphical representation of a concept or process that systems developers can analyze, test, and modify. A systems analyst can describe and simplify an information system by using a set of business, data, object, network, and process models. Prototyping involves the creation of an early working version of an information system or its components. A prototype can serve as an initial model that is used as a benchmark to evaluate the completed system, or it can develop into the final version of the system. CASE tools help systems analysts develop and maintain information systems. CASE tools provide an overall framework for systems development, support a wide variety of design methodologies, boost IT productivity, and improve the quality of the finished product. Agile development methods have attracted a wide following and an entire community of users. Agile methods typically use a spiral model, which represents a series of iterations, or revisions, which are based on user feedback. Proponents of the spiral model believe that this approach reduces risks and speeds up software development. Analysts should recognize that agile methods have advantages and disadvantages. By their nature, agile methods allow developers to be much more flexible and responsive, but can be riskier than more traditional methods. For example, without a detailed set of system requirements, certain features requested by some users might not be consistent with the companys larger game plan. Other potential disadvantages of adaptive methods can include weak documentation, blurred lines of accountability, and too little emphasis on the larger business picture. Also, unless properly implemented, a long series of iterations might actually add to project cost and development time.

10. What is objected-oriented analysis, and how does it differ from structured analysis? Whereas structured analysis regards processes and data as separate components, objectoriented (O-O) analysis combines data and the processes that act on the data into things called objects. O-O analysis uses object models to represent data, behavior, and the means objects affect other objects. By describing the objects (data) and methods (processes) needed to support a business operation, a system developer can design reusable components for faster system implementation and decreased development cost. Many analysts believe that, compared with structured analysis, O-O methods are more flexible, efficient, and realistic in todays dynamic business environment.

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